That question still remains even after the airport authority held a special meeting Thursday night in part to discuss that topic.

Before big decisions can be made:

• The authority has to complete an appraisal.

• The Federal Aviation Administration must deem the property surplus

• Authority staff has to analyze the transfer agreement with Los Angeles World Airports to ensure there are no conflicts.

At its March meeting, CEO Kelly Fredericks, asked commissioners how the OIAA should handle developer inquiries into the 147-acre property, located east of Haven Avenue and commonly referred to as “the boot” because of its complex boundaries.

On Thursday, Fredericks recommended that the authority consider selling the 147 acres through an auction.

“We were tasked with coming back with a recommendation, and we feel it’s in the best interest to work with the FAA, and have them deem the property surplus,” he said.

The authority must also complete an appraisal of the property because it can only be disposed at fair market value, Fredericks said.

LAWA purchased the property without Federal Aviation Administration grant funds, so there’s no encumbrances — or reimbursement associated with grant funds, he said.

Based on a proposal that had a firm and substantial offer, Fredericks started to consider the economic benefits a sale could mean for the airport.

To put it in perspective, one of the conditions of the transfer is that the airport authority pay back $70 million in debt to Los Angeles World Airports. Currently, all passenger facility charges, which generate $8.7 million annually, are obligated to pay down the debt.

“As we continued on the analysis — we had multiple offers — one offer indicated we could not only pay off the debt to LAWA,” he said, “but if we paid off early, now and before the end of the year, the net present value on that $70 million obligation is approximately $50.5 million.”

That means the airport authority would be saving $19.5 million, Fredericks told the authority.

And it would free up $8.9 million from the facility charges annually earmarked to pay the debt.

Authority President Alan Wapner said he supports an auction but would consider other options.

Fredericks’ recommendation did little to please Commissioner Lucy Dunn, president and CEO of the Orange County Business Council.

“The direction the last meeting was to develop a process. Instead you came back for a recommendation for sale,” she said. “I’m struggling with that because once again, I’ve had this for 24 hours and haven’t been able to read this through.”

Dunn was referring to the fact that Thursday’s meeting was special and the agenda and accompanying staff reports were released just the day before. She acknowledged she was persuaded at the idea of being able to pay off the debt to LAWA, but said she still feels the discussion on the 147 acres is moving too quickly without much thought.

Commissioner Curt Hagman said he agreed with both Wapner and Dunn’s comments. He suggested that the authority move forward with plans to meet with the FAA to get the property deemed surplus, and to get an appraisal as well.

“Then we can bring it back to the board,” Hagman said.

The appraisal would not be completed until July. Until then, the authority could decide how it wants to proceed, Fredericks said.

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